8-9-2011 New “UP” in Indicator 2
As we suggested yesterday, Indicator #2 has changed back to “UP” after a turnaround in the S&P 500. The publisher moved back into stock funds based on the indicator change.
8-8-2011 Stop Loss “DOWN” in Indicator 1 and Indicator 2
Both indicator 1 and 2 are now confirmed on “DOWN” due to breaking our stop loss level of 1248 and the subsequent close below 1195.
Very short term indicators and medium term indicators are indicating a rebound move up is coming in the next 1-4 days. The market may fall further first, but will then bounce (typically the market bounces up substantially after a large move down).
In fact, Major Market Indicator #2 will move to UP pending on Tuesday. While I have moved 90%+ of my holdings to cash after the S&P 500 dropped below our “stop loss” level of 1248, I am now keeping my remaining stock fund positions in anticipation of the rebound.
Please check back Tuesday and Wednesday for further alerts on Indicator #2.
8-7-2011 Market Indicator Change Alert
The conditions on Friday will repeat for Monday: For the next day, the Major Market indicators (#1 and #2) will both stay on “UP” as long as the market closes over S&P 500 1195. With any CLOSE of the S&P below 1195 both indicators move to “DOWN”. Give the “volatile” situation over the last week I have substantially reduced my holdings in stock funds.
The market is very close to a short-term bounce up; if the Major Market indicator #2 does move to “DOWN”, it will likely reverse back to “UP” in 1-3 days.
At the time of this writing Sunday evening Eastern US time the Dow & S&P500 futures are down substancially, indicating a large market drop at the open on Monday. It’s possible the market may bounce after opening down.
8-5-2011 Market Indicator Change Alert
The S&P 500 fell under our “Stop” level of 1248 Thursday in a dramatic fashion, with the major markets falling 5%+. Both the Major Market Indicator #1 and #2 would have triggered to “DOWN” with the drop below 1248, except that the market fell so far below 1248 that it hit a key support level of 1200. (S&P 500 1200 is a point where the market is more likely to recover). Furthermore, the short term indicators that I use (but don’t publish) are indicating “UP”.
For the next day, the Major Market indicators (#1 and #2) will both stay on “UP” as long as the market closes over S&P 500 1195. With any close of the S&P below 1195 both indicators move to “DOWN”.
Give the “volatile” situation over the last day I have substantially reduced my holdings in stock funds, and will move to 100% cash with a close below 1195.
